Profit before tax rose by 1% to Rs 1,419 crore in Q3 FY24 as compared with Rs 1,399 crore in Q3 FY23.

EBITDA was Rs 261 crore in Q3 FY24, up 5% YoY as compared to Rs 248 crore during Q3 FY23. EBITDA Margin jumped 31% in Q3 FY24 as against with 30% Q3 FY23.

During the quarter, Syngene concluded the acquisition of the multi-modal biologics manufacturing facility from Stelis Biopharma Ltd as announced in July 2023. Once operational, the acquisition will add 20,000 litres of biologics drug substance manufacturing capacity to Syngene’s existing capabilities. It also includes a commercial scale, high speed, fill-finish unit, which is an essential capability for drug product manufacturing. The facility is expected to be operational in the second half of FY25, subject to regulatory approvals.

On guidance front, the company said that the temporary slow-down in biotech funding in the US is likely to result in sustained but slower growth in the near term. Taking this into account, it now anticipates full-year revenue growth at around double digits in constant currency compared with our earlier projection of mid-teens constant currency growth.

Commenting on the quarter, Jonathan Hunt, managing director and chief executive officer, Syngene International, said, “Overall, our 9% growth in the quarter was affected by reduced funding in the US biotech segment which impacted demand in our Discovery Services Division. Our Dedicated Centers and Development and Manufacturing Divisions performed well. We are starting to see early signs of funding levels stabilizing and industry fundamentals for pharma outsourcing remain positive for the medium-to-long term.

In terms of our business strategy, we concluded the acquisition of the multi-modal biologics manufacturing facility from Stelis Biopharma and we have embarked on repurposing the facility from vaccines to biologics manufacturing in preparation for revalidation. We expect the facility to be ready for operations in the second half of fiscal year 2025, subject to regulatory approvals.”

Syngene International is engaged in providing contract research and manufacturing services from lead generation to clinical supplies to pharmaceutical and biotechnology companies worldwide.

The scrip fell 1.42% to close at Rs 686.05 on Thursday, 25 January 2024.